What do logistics mean?
The management of resources or products when in storage and transit. In ecommerce ventures, logistics are the processes of shipping order to customers or transporting an inventory to a merchant. The logistics process keeps a track of goods in transit and up unto the point of delivery. Logistics management is the practice of locating and identifying potential distribution and shipping companies, and evaluating their effectiveness. For most businesses it is more cost effective to outsource the logistics to a third-party company that specializes in transport and storage, and this is especially true for ecommerce ventures.
The introduction of logistics in the shipping of goods has meant a sharp decrease in goods that go missing in transit, or drivers of vehicles who decide to take a detour on their way to the destination. The packages can be located at any point during the journey thanks to equipment in the truck or other means of transport being used. It has also improved delivery times, ensuring that customers have goods and products when they need them. The ultimate goal of logistics is to move goods from one point in the supply chain to the next in the fastest, most efficient and most cost effective manner possible.
Business logistics has transformed dramatically since the 1970s. Supply companies and supply chains have become increasingly complex due to the rise of global supply chains. This spawned the need for specialists in logistics, known as logisticians. The complexity of supply chain management only increased with the boom in technology as software was developed that aids in the movement and tracking of goods in the supply chain. While the software helps map out and track shipping routes, it has also allowed for increasing complexity in supply chains.